Key issues addressed in this report include:
How should the term risk be defined within the context of ORM?
What are the key risk concepts and how should they be applied in ORM?
What is the true nature and magnitude of operational risk?
What is the ORM business problem?
How can one assess and measure operational risk using hard data, soft data and/or expert opinion (scenario analysis)?
What are the drawbacks of the Traditional Approach? What would be the benefits of transitioning to an alternative approach (e.g., the Modern Approach), and what is the evolutionary path?